Jokowi Urges Accelerated Development of Electric Auto Industry

JAKARTA, KOMPAS.com - Indonesia's President Joko “Jokowi '' Widodo called for automotive industry players to speed up the development of electric vehicles as one of the mainstay sectors in the country. 

"The development of the electric car industry must also be accelerated. We hope it will become one of the leading industries in Indonesia," said Jokowi during the opening of the Indonesian International Hybrid Motor Show Automotive Exhibition at the State Palace in Jakarta Thursday, April 15.

As many nations are transitioning towards green energy to build environment-friendly cities, Jokowi wanted the automotive industry to also shift gears to embrace renewable energy resources.

Also read: Indonesia Ready to Become Major Player in Electric Vehicle Industry: Minister

The president said that in the future green economy can be one of the reliable resources in Indonesia as the country has strong potential in this sector.  

"The use of renewable energy such as B30, B100 must also be continued," Jokowi said, referring to biodiesel fuel products in the country.

The automotive industry, Jokowi added, is one of the drivers of the country's economy. It is because the industry involves many domestic business actors. Therefore, Jokowi urged the accelerated development of the automotive industry.

This also is a clear signal that the role of the micro, small and medium enterprises (MSME) industry in the supply chain must also be encouraged and becomes a "strategic priority" for the country.

"The most important thing is the absorption of local labor and improvement of community welfare. That is our goal," said Jokowi.

The automotive industry, Jokowi continued, must also be a priority for investment development.

Also read: Indonesia, South Korea’s LG Group Sign Electric Vehicle Battery MOU Worth $9.8 Billion

More rigorous customer demand might increasingly emerge, new policies reshaping the industry will continue to evolve and intensive competition will manifest. Therefore, the government has committed to improving the investment climate with the establishment of the Job Creation Law and the Indonesia Investment Authority.

"The tax relaxation policy has also been issued by the government to boost sales and purchasing power of automotive products to encourage more demand to drive our automotive industry," said Jokowi.

(Writer: Fitria Chusna Farisa | Editor: Kristian Erdianto)

Source: https://nasional.kompas.com/read/2021/04/15/11455731/jokowi-minta-pengembangan-industri-mobil-listrik-dipercepat